The company was a pioneer in the production of circuit breakers. The move is aimed at extending its presence in the low voltage electrical business. The Board of Industrial & Financial Restructuring (BIFR) has also reportedly given its clearance for the merger of Datar Switchgears with L&T.

The remaining legal formalities in this regard will be completed in the next one or two months, according to the sources.

L&T has already shifted all the technology and machinery of Nashik-based Datar Switchgears to its Ahmednagar facility in Maharashtra. The company has also transferred 160 workers of Datar Switchgears to its Ahmednagar facility. But, it is still not known what actual plans L&T has at Nashik.

Datar Switchgears, established in 1984 in Nashik, had indigenously developed the technology for the manufacture of earth leakage circuit breakers (ELCB) and minutes circuit breakers (MCB). Datar Switchgears was also involved in manufacturing switchgears, Ultrasonic Welding Machines and of Capacitor Panels, for rental and outright sales.

But the company had financially come into distress with the collapse of company's cash flow and affecting payments of interest and principle to financial institutions, banks and other financiers, and also a loss of substantial business opportunities.

Initially, the Company had stared manufacturing switchgears. After getting a foothold in the switchgears industry, the Company had integrated backwards into the manufacture of Permanent Magnet Relays, which is the heart of Switchgear products, and had also diversified into the manufacture of Ultrasonic Welding Machines.

Relays were being manufactured for the captive consumption as well as sold to other users including competitors. Apart from switchgears, Datar Switchgears had diversified into manufacturing of Capacitor Panels.